CS Professional · December 2025 · Paper 7.5
CS Professional Insolvency and Bankruptcy - Law and Practice December 2025: paper analysis
Our own analysis of the official paper, as of 12 October 2026. The questions and answers belong to ICSI; read them on ICSI's website.
Chapter-wise marks
Where the marks were in this paper (out of 100; internal-choice alternatives not double counted).
What each question tested
In our words, by question number. Open the official paper for the full question.
| Q | Marks | Tests | Chapter |
|---|---|---|---|
| 1(a) | 5 | Insolvency legislation in India before the IBC and the laws it consolidated | Introduction to Insolvency and Bankruptcy Code |
| 1(b) | 5 | Whether the IBC is a recovery law or a resolution law, with case law | Introduction to Insolvency and Bankruptcy Code |
| 1(c) | 5 | Allottees of a real estate project as financial creditors and threshold for initiating CIRP, with case law | Corporate Insolvency Resolution Process |
| 1(d) | 5 | Composition of the CoC and financial creditor status of an assignee of trade receivables | Corporate Insolvency Resolution Process |
| 1(e) | 5 | Time limit for CIRP completion, extensions and periods excluded from computation | Corporate Insolvency Resolution Process |
| 2(a)(i) | 2 | Initiation of CIRP by the corporate debtor itself on default | Corporate Insolvency Resolution Process |
| 2(a)(ii) | 2 | Whether a corporate debtor may initiate CIRP without any default | Corporate Insolvency Resolution Process |
| 2(a)(iii) | 4 | Related party exclusion from CoC where a relative of a creditor official resigns as KMP, with case law | Corporate Insolvency Resolution Process |
| 2(a)(iv) | 4 | Eligibility of resolution applicants under section 29A: NPA account and past conviction | Resolution Strategies (Elective 7.5) |
| 2(b)(i) | 2 | Meaning of qualified buyer under the SARFAESI Act | Debt Recovery and Securitization |
| 2(b)(ii) | 3 | Modes by which ARCs acquire financial assets from banks and financial institutions | Debt Recovery and Securitization |
| 2(c)(i) | 4 | IP disciplinary review: appointment of an extra valuer at CoC request | Professional and Ethical Practices for Insolvency Practitioners |
| 2(c)(ii) | 4 | IP disciplinary review: failure to protect the debtor in a settled arbitration claim | Professional and Ethical Practices for Insolvency Practitioners |
| 3(a) | 5 | Whether NCLT may defer admission of a section 7 application pending settlement talks, with case law | Corporate Insolvency Resolution Process |
| 3(b) | 5 | Debtor-in-possession in PPIRP versus RP control in CIRP, and when management shifts to the RP | Pre-Packaged Insolvency Resolution Process (Elective 7.5) |
| 3(c) | 5 | Treatment of unclaimed dividends in voluntary liquidation | Voluntary Liquidation of Companies |
| 3(d) | 5 | Power of the Adjudicating Authority to replace a resolution professional, with case law | Resolution Strategies (Elective 7.5) |
| 3(e) | 5 | Scheme of compromise under section 230 after a liquidation order | Liquidation of Corporate Person |
| 4(a) | 5 | Whether unallotted and unrefunded share application money is financial debt under section 5(8) | Introduction to Insolvency and Bankruptcy Code |
| 4(b) | 5 | Release of PMLA-attached assets after approval of a resolution plan and the NCLT jurisdiction question | Corporate Insolvency Resolution Process |
| 4(c) | 5 | Lease premium and rent to a lessor during moratorium under section 14 explanation | Corporate Insolvency Resolution Process |
| 4(d) | 10 | Classifying listed transactions as preferential, undervalued, fraudulent or extortionate avoidance transactions | Liquidation of Corporate Person |
What stood out
- Four compulsory questions of 25 marks each with no alternatives, built around long case narratives and decided case law.
- Corporate Insolvency Resolution Process dominated with 9 of 22 entries, covering initiation, CoC composition, timelines, moratorium and plan implementation.
- A 10-mark exercise on classifying avoidance transactions was the largest single item, testing application rather than recall.
- Individual insolvency, bankruptcy, fresh start, group and cross border insolvency chapters were not tested in this paper.
- Professional ethics of insolvency professionals was tested through disciplinary-order style scenarios worth 8 marks.
Practise the chapters that carried the marks
Corporate Insolvency Resolution Process, Introduction to Insolvency and Bankruptcy Code, Liquidation of Corporate Person: study guides and practice questions in the CS Professional format.